Charles Schwab (SCHW) investor relations material

Executive summary

• Achieved record Q2 2026 results with net revenues of $7.1 billion, GAAP EPS of $1.54 (adjusted $1.62), and net income of $2.8 billion, driven by strong client growth, innovation, and diversified business lines.

• Core net new assets reached $119.8 billion, up 49% year-over-year, with 1.4 million new brokerage accounts opened and total client assets at $13.08 trillion.

• Expanded digital, AI, and crypto offerings, including the launch of Schwab Crypto™ and Portfolio Insights, and completed the Forge Global Holdings acquisition.

• Recognized as an industry leader with top platform awards and high client satisfaction.

• Strategic investments in technology, people, and new capabilities position the firm for durable earnings growth and long-term success.

Financial highlights

• Total revenue grew 21% year-over-year to $7.1 billion in Q2 2026.

• Adjusted EPS was $1.62 (+42% YoY); GAAP EPS was $1.54 (+43% YoY); net income reached $2.8 billion.

• Trading revenue increased 28% to $1.2 billion, and asset management fees rose 16% to $1.8 billion.

• Bank lending balances at $67 billion (+33% YoY); managed investing net flows up 53% YoY.

• Return on average common equity was 25%; adjusted return on tangible common equity reached 44%.

Outlook and guidance

• Full-year 2026 revenue growth expected at 17.5%-18.5%, with NIM projected to expand to 3%-3.10%.

• Annual expense growth anticipated at 9.5%-10.5%, including volume-related and acquisition impacts.

• Organic asset growth target reaffirmed at 5% for 2026.

• Scenario planning reflects Fed Funds rate finishing 2026 between 3.25% and 4.00%, and S&P 500 appreciation of 6.5–13%.

• Capital expenditures for 2026 projected slightly above 3-5% of net revenues due to higher software and infrastructure investments.